Question

Saved Help Save & Exit Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,600 of direct materials, $6,966 of direct labor, and $10,16 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.00 per direct labor-hour. During May, the following activity was recorded: $ 9,300 $38,800 $40,100 Raw materials (all direct materials): Beginning balance Purchased during the month Used in production Labor: Direct labor-hours worked during the month Direct labor cost incurred Actual manufacturing overhead costs incurred Inventories: Raw materials, May 30 Work in process, May 30 2,700 $ 25,310 $34,100 7 $17,145 Work in process inventory on May 30 contains $3,885 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The balance in the raw materials inventory account on May 30 was: Multiple Choice Pry 1 of 16 Next >

Answer 1

Value of Raw Material as on 30th May:

Opening Raw Material : $ 9300

Add : Purchased During the month : $38800

Less: Used during the month for production : $40100

Closing Balance of Raw material is : $8000

So the answer is $ 8000